AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings of “aa-” (Superior) of Mutual of Omaha Insurance Company and its subsidiaries, United of Omaha Life Insurance Company, Companion Life Insurance Company (Melville, NY) and United World Life Insurance Company. Concurrently, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of “a” (Excellent) of Mutual of Omaha Insurance Company’s surplus notes. (Please see below for a detailed listing of the Long-Term IRs.) The outlook of these Credit Ratings (ratings) is stable. The group (collectively referred to as Mutual of Omaha) is domiciled in Omaha, NE, unless otherwise specified.

The ratings reflect Mutual of Omaha’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Mutual of Omaha’s balance sheet strength is supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The organization has good liquidity with access to an unsecured credit facility, as well as facilities available to the insurance entities from the Federal Home Loan Bank. Operating leverage has been steadily increasing over the past few years due to the company’s Funding Agreement Backed Notes program. Operating leverage metrics are expected to remain within AM Best’s guidelines. Financial leverage, as calculated by AM Best, was 22.6%, at year-end 2025 and interest coverage was considered strong at 10x. Mutual of Omaha maintains a highly diversified investment portfolio with good credit quality.

On April 1, 2026, the organization converted to a mutual holding company structure with the formation of Mutual of Omaha Holding Company. The new holding company structure can provide the organization with additional financial flexibility and the potential to issue debt instruments via capital markets.

Mutual of Omaha has experienced improving trends in both earnings and return metrics in the past few years, as well as steady premium growth. AM Best notes that earnings have been improving despite the impact of strain from new sales. The organization’s earnings are well-diversified across all business segments with no reliance on any one segment or line of business.

Mutual of Omaha’s favorable business profile is supported by its well-diversified product portfolio and strong brand name recognition. The company is a leading writer of Medicare Supplement and has a top 10 market position in a number of products including group benefits, pension risk transfer under $50 million segment, indexed universal life, traditional life and reverse mortgage lender. AM Best acknowledges that while Medicare Supplement remains Mutual of Omaha’s largest product as a share of revenue, the percentage of revenue has been declining as the company grows other product lines.

Mutual of Omaha maintains a formal ERM program, which AM Best assesses as appropriate. The company utilizes capital modeling to assess risks and allocate capital, and to support business decisions. Mutual of Omaha has clear risk appetite statements that guide the program and are embedded within its ERM policy and program. Furthermore, the company maintains an ongoing focus on cyber risk capabilities and expansion of its risk culture throughout the organization.

The following Long-Term IRs have been affirmed with stable outlooks:

Mutual of Omaha Insurance Company—
-- “a” (Excellent) on $300 million 6.144% surplus notes, due 2064
-- “a” (Excellent) on $300 million 6.80% surplus notes, due 2036
-- “a” (Excellent) on $300 million 6.95% surplus notes, due 2040

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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